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LithiumBank Announces Option Agreement for Saskatchewan Properties - Receives $8 Million Non-Refundable Deposit - Terminates Pristine Asset Purchase Agreement
Calgary, Alberta--(Newsfile Corp. - December 21, 2023) - LithiumBank Resources Corp. (TSXV: LB...
About this update from Lithiumbank Resources Corp.
[{"type":"text","content":"LithiumBank Announces Option Agreement for Saskatchewan Properties - Receives $8 Million Non-Refundable Deposit - Terminates Pristine Asset Purchase AgreementCalgary, Alberta--(Newsfile Corp. - December 21, 2023) - LithiumBank Resources Corp. (TSXV: LBNK) (OTCQX: LBNKF) (\"LithiumBank'' or the \"Company\") is pleased to announce it has entered into an option agreement dated December 20, 2023 (the \"Option Agreement\") pursuant to which the Company has granted the optionee the option to purchase one or more of the Company's three lithium brine projects, Estevan, South and Kindersley (the \"Assets\") located in Saskatchewan, Canada (collectively, the \"Options\").Concurrently with entering into the Option Agreement, the optionee has paid to the Company a non-refundable deposit of $8 million. The optionee may exercise one or more of the Options by paying the applicable purchase price as set out in the option agreement, less the deposit, to the Company at any time until March 31, 2024, upon which time the Options shall automatically terminate.\"LithiumBank's objective is to maximize shareholder value and to lay the foundation for a thriving lithium district in western Canada,\" commented Paul Matysek, Executive Chairman of LithiumBank. \"This option agreement is further validation of our vision. The agreement provides the Company non-dilutive capital while also raising the profile and potential of the geological district that includes the Company's Flagship Boardwalk Project and its larger look-a-like Park Place Project in west central Alberta. We appreciate the work done by Pristine Lithium and wish them luck in their future endeavours.\"Termination of Pristine Asset Purchase AgreementFurther to the Company's news release dated July 31, 2023, the Company announces that it has mutually agreed with Pristine Lithium Corp. (\"Pristine\") to terminate the asset purchase agreement entered into in July 2023 pursuant to which Pristine agreed to acquire the Assets. In connection with the termination, the Company: (i) paid to Pristine a break-fee of $3.0 million and (ii) returned to Pristine its deposit of $250,000.In connection with the Option Agreement, the Company has agreed to pay a cash finder's fee to Kepis & Pobe Financial Group Inc. equal to 1.6% of the consideration received by the Company pursuant to the Option Agreement. The O...